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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirements for eligibility for a limitation on |
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the appraised value of property for school district maintenance and |
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operations ad valorem tax purposes under the Texas Economic |
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Development Act and the imposition of a penalty for failure to meet |
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certain eligibility requirements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 313.026(c), Tax Code, is amended to read |
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as follows: |
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(c) The comptroller may not issue a certificate for a |
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limitation on appraised value under this chapter for property |
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described in an application unless the comptroller determines that: |
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(1) the project proposed by the applicant is |
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reasonably likely to generate, before the third [25th] anniversary |
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of the beginning of the limitation period, tax revenue, including |
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state tax revenue, school district maintenance and operations ad |
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valorem tax revenue attributable to the project, and any other tax |
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revenue attributable to the effect of the project on the economy of |
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the state, in an amount sufficient to offset the school district |
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maintenance and operations ad valorem tax revenue lost as a result |
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of the agreement; and |
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(2) the limitation on appraised value is a determining |
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factor in the applicant's decision to invest capital and construct |
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the project in this state. |
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SECTION 2. Subchapter B, Chapter 313, Tax Code, is amended |
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by adding Section 313.0274 to read as follows: |
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Sec. 313.0274. RECAPTURE OF AD VALOREM TAX REVENUE LOST IF |
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TAX REVENUE GENERATED DOES NOT OFFSET TAX REVENUE LOST. (a) |
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Notwithstanding any other provision of this chapter to the |
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contrary, the audit submitted under Section 313.034 by a recipient |
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of a limitation on appraised value under this chapter must show that |
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the tax revenue described by Section 313.034(1) is sufficient to |
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offset the tax revenue described by Section 313.034(2). |
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(b) If in any tax year the audit submitted by a recipient of |
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a limitation on appraised value under this chapter fails to comply |
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with Subsection (a), the recipient is liable to this state for a |
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penalty equal to the amount computed by subtracting from the market |
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value of the property for that tax year the value of the property as |
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limited by the agreement and multiplying the difference by the |
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maintenance and operations tax rate of the school district for that |
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tax year. |
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(c) A penalty imposed under Subsection (b) becomes |
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delinquent if not paid on or before February 1 of the following tax |
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year. Section 33.01 applies to the delinquent penalty in the |
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manner that section applies to delinquent taxes. |
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(d) In the event of a casualty loss that prevents a person |
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from complying with Subsection (a), the person may request and the |
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comptroller may grant a waiver of the penalty imposed under |
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Subsection (b). |
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SECTION 3. The heading to Section 313.0275, Tax Code, is |
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amended to read as follows: |
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Sec. 313.0275. RECAPTURE OF AD VALOREM TAX REVENUE LOST IF |
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PROPERTY OWNER FAILS TO MAKE MINIMUM AMOUNT OF QUALIFIED |
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INVESTMENT. |
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SECTION 4. Subchapter B, Chapter 313, Tax Code, is amended |
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by adding Section 313.034 to read as follows: |
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Sec. 313.034. AUDIT SHOWING TAX REVENUE GENERATED AND LOST. |
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After each ad valorem tax year covered by the agreement beginning |
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with the third ad valorem tax year, each recipient of a limitation |
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on appraised value under this chapter shall submit to the |
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comptroller an audit prepared by an independent auditor showing: |
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(1) the tax revenue generated by the project, |
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including state tax revenue, school district maintenance and |
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operations ad valorem tax revenue attributable to the project, and |
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any other tax revenue attributable to the effect of the project on |
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the economy; and |
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(2) the school district maintenance and operations ad |
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valorem tax revenue lost as a result of the agreement. |
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SECTION 5. Section 313.025(f-1), Tax Code, is repealed. |
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SECTION 6. The change in law made by this Act applies only |
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to an agreement entered into under Chapter 313, Tax Code, pursuant |
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to an application filed under that chapter on or after the effective |
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date of this Act. An agreement entered into under that chapter |
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pursuant to an application filed before the effective date of this |
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Act is governed by the law in effect on the date the application was |
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filed, and the former law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |